Technological adoption in health care - The role of payment systems
Barros, Pedro Pita (Universidade Nova de Lisboa)
Martínez Giralt, Xavier (Universitat Autònoma de Barcelona. Departament d'Economia i d'Història Econòmica)

Date:	2015
Abstract:	This paper examines the incentive to adopt a new technology resulting from common payment systems, namely mixed cost reimbursement and DRG reimbursement. Adoption is based on a cost-benefit criterion. We find that retrospective payment systems require a large enough patient benefit to yield adoption, while under DRG-linked payment, adoption may arise in the absence of patients benefits when the differential reimbursement for the old vs new technology is large enough. Also, mixed cost reimbursement leads to higher adoption under conditions on the differential reimbursement levels and patient benefits. In policy terms, mixed cost reimbursement system may be more effective than a DRG payment system to induce technology adoption. Our analysis also shows that current economic evaluation criteria for new technologies do not capture the different ways payment systems influence technology adoption. This gives a new dimension to the discussion of prospective vs retrospective payment systems of the last decades centered on the debate of quality vs cost containment.
Grants:	Ministerio de Economía y Competitividad ECO2012-31962
Note:	Financial support of Acção Integrada E97/04 and PTDC/Eco/71867/2006 (Pedro P. Barros) and partial support from research projects2009SGR-169, ECO2012-31962 and the Spanish Ministry of Economy and Competitiveness, through the Severo Ochoa Programme for Centres of Excellence in R&D (SEV-2011-0075) (Xavier Martinez-Giralt) is gratefully acknowledged.
Rights:	Tots els drets reservats.
Language:	Anglès
Document:	Article ; recerca ; Versió publicada
Subject:	Serveis sanitaris ; Healthcare ; Technology adoption ; Reimbursement systems
Published in:	B.E. Journal of economic analysis & policy, Núm. 2 (April 2015) , p. 709-745, ISSN 1935-1682

DOI: 10.1515/bejeap-2014-0113

37 p, 823.7 KB

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